EXDS vs CREE......which is the better investment?
Wanted to make some points and pose some questions to the thread. The purpose would be to crystallize our thinking on why we choose one stock over another. I thought comparing EXDS and CREE would be a way to do this since neither is a Gorilla, and therefore neither is an obvious investment choice based on the GG. Also, I use these two because I have been watching them and interested in them both since last June. In making this post, I am NOT advocating one company over another. I just want to understand how people think, because I respect you all so much.
Sex Appeal
EXDS enables the internet, hosts as much as 25% of all internet traffic. CREE makes LEDs, enables lighting, has lots of potential opportuniites in different lighting markets. My nod for sex and glamour goes to EXDS, as an internet pick & shovel play.
Earnings
EXDS has none. CREE, a much smaller company, does. Nod to CREE
Revenues
EXDS is growing revenues by > 40% qtr to qtr, for the last 13 quarters. I don't know the numbers, but I gather thru reading our thread that CREE is also 'on fire'. The stock price sure is.
siliconinvestor.com
This looks like a push to me.
Market Cap
EXDS is about $20 billion; CREE is about $3.5 billion. If both are destined to hit $100-200 billion caps, it makes sense to me that CREE is the better investment because it is earnings positive at a much lower market cap.
Simian or Royalty play?
EXDS is a King. It is in the tornado.
CREE is not well characterized, because the thread hasn't been able to determine if it possesses unique intellectual property, by patent or by manufacturing prowess. It may be a gorilla candidate, approaching a tornado.
Which is the better buy?
Are people investing in Cree because it has better growth potential, has demonstrated earnings,or because it is sitting at a smaller market cap? Or are they investing in it because they believe it is a gorilla candidate? Other reasons? What is the intellectual thought process that helps people decide?
UF? Lindy? Lucius Lamar? UW? Others?
Apollo, tanning in Hawaii <g> |
